Tue, Dec 12 2023 8:16 PM EST
Argentina devalues currency by more than half, cuts subsidies
Argentina has sharply devalued its currency and cut subsidies for energy and transport as part of economic shock measures that new Economy Minister Luis Caputo said were aimed at fixing the country’s worst crisis in decades.
The peso was weakened by about 56% to 800 pesos to the dollar, from 366.5 before the move took effect. The Argentinian blue dollar – referring to cash dollars bought and sold informally – traded at 1050 to the dollar.
Caputo said the plan was needed to cut the fiscal deficit and bring down triple-digit inflation.
Argentina’s annual inflation rate stood at 143% in October. The country is also grappling with a fiscal deficit, as well as a $45 billion debt to the International Monetary Fund.
— Associated Press
Tue, Dec 12 2023 7:39 PM EST
